Freedonia Group forecasts that global lubricant demand will grow at an average annual rate of 2.3 percent the next five years, reaching 43.9 million metric tons in 2017. The business research group predicts that Asia, the Middle East and Africa will see the greatest increases, offsetting stagnant demand in Western Europe and North America.

Freedonias new study, World Lubricants, estimates that worldwide lube demand rose an average of 1 percent the past five years, reaching 39.2 million tons in 2012. Demand in Asia-Pacific grew at a healthy average of 4.1 percent per year, but Western Europe and North America shrank at average annual rates of 2.6 percent and 1.9 percent, respectively.

In the next five years lubricant consumption in Asia-Pacific should continue growing for the same reasons as in the past, the study said – rising vehicle ownership rates and industrialization in large countries such as China. Demand in the Middle East, Africa and South and Central America (increasing an average of 2.4 percent through 2017) will swell thanks to healthy economic growth, rising manufacturing output and expanding auto populations. Economic growth and increased industrial output is also forecast for Western Europe and North America, but the effects of those trends will be offset in those regions by use of more efficient lubricants.

There is good news for lubricant marketers in Western Europe and North America, though. While sales volumes will be essentially flat these regions will see increased use of high-value products such as synthetic and bio-based lubes.

Freedonias study predicts that engine oil demand will rise, with longer drain intervals partly offsetting the effects of growing vehicle populations. Consumption of hydraulic fluids and process oils will rise faster on a percentage basis, due to the wide range of applications in which they are used. Use of lubricants used in manufacturing will also grow significantly, especially in developing countries.

World Lubricants is 477 pages and costs U.S. $6,300. For information visit www.freedoniagroup.com

Castrol Names New CEO

Paul Waterman became CEO of Castrol and senior executive vice president of BP Lubricants 1 July, succeeding Mike Johnson, who will retire at the end of 2013. According to an 11 July announcement, Waterman has run the Australia and New Zealand Fuels Value Chain since 2010. After joining Castrol in 1994, he spent 11 years in the lubricants business out of his 20 years downstream experience in the United Kingdom, United States and Australasia. He was vice president of the automotive Americas region in 2007 and 2008, and then vice president of business-to-business segments (marine, industrial, aviation and energy lubricants) in 2009.

Mike is a talented leader and has delivered great results over the past six years, Waterman said. Going forward, we have a strong team, with great brands and customer relationships, underpinned by leading technology and an efficient supply chain. I believe this is a very strong foundation to support continued growth into the future, and I am very excited to be leading this team.

According to consultancy Kline & Co.s study, Global Lubricants Industry: Market Analysis and Assessment, Castrol ranked third in global market share of finished lubricants in 2011, at 7 percent, behind Shell (13 percent) and ExxonMobil (10 percent). Kline estimated global lubricant consumption at 38.6 million metric tons in 2011.

Russias Oldest Grease Brand Sold

Moscow-based chemicals producer Russian Chemical Co. (RCC) bought exclusive rights to manufacture and market Rikos products, one of the countrys oldest grease brands. RCC spokesman Nikolay Kochurkov said, Under the license, our company acquired the whole intellectual property of Rikos, and no other enterprise is [allowed] to use the Rikos trademark.

The finished products are now being manufactured in Kazan, Republic of Tatarstan, where RCC has an 8,000 tons per year grease manufacturing facility, rather than in the former Rikos plant in Rostov-on-Don. Litol-24 and Ciatim-201 are multifunctional greases for aviation applications, and for radio-electronic components and installations in severe climates. Thanks to the quality of our products and good logistics management, we started to ship greases not only in Russia, but in Ukraine, Armenia and Kazakhstan as well, the company said. Beside greases, RCC also produces chemical and polymer raw materials and lube additives.

Avista Renames German Refinery

Avista Oil announced that Mineralol-Raffinerie Dollbergen GmbH is now known as Avista Oil Refining & Trading Deutschland GmbH. As a result, the refinery in Uetze began the international integration process of the companys used oil collection companies and refinery sites.

Once the rebranding of the German refinery is complete, the Danish refinery Dansk Olie Genbrug A/S and the U.S.-based Universal Environmental Services LLC will follow. The rebranding signals the unity of the Avista Oil Group companies. This strengthens our market perception. It also communicates what great development our group has gone through in recent years, and continues to go through, said Managing Director Detlev Bruhnke.

The changes only affect the name and appearance, which is unified with a group-wide global corporate identity. For employees and business partners, nothing else changes except the name. Regional responsibilities also remain the same.

ECHA Revamps Information Handling

The European Chemical Agency and several stakeholder organizations have developed a plan to improve the content and use of exposure scenarios by 2018. Exposure scenarios describe how a substance can be used safely in an application, and extended safety data sheets contain substance and safety information that manufacturers or sellers must provide to customers under REACH.

Goals of the plan are to:

achieve a common understanding among stakeholders on the purpose of the information in the Chemical Safety Report and exposure scenarios for communication;

identify the information that registrants need from downstream users so they can assess their uses;

develop IT tools to support the efficient generation and communication of consistent information on safe use;

set up a process for formulators to consolidate the information from single substances into information on the conditions of safe use for their products;

analyze the specific needs of various end users of chemicals to provide targeted safety advice.

According to the plan, specific steps will involve studies, surveys, workshops and published guidance.

Chevron Adds Third Group II Hub

Chevron Lubricants announced that it will add a storage facility for API Group II base oil in Eastham, England. This is Chevrons third Group II supply hub in Europe, joining facilities in Antwerp, Belgium, and Hamburg, Germany. The product line to be inventoried at the facility includes Group II grades 100R, 220R, 600R and Group II+, 110RLV.

Performance specifications are tightening in Europe to the point that Group II quality base oil will advantage many formulations, said Cary Knuth, general manager, base oils, Chevron Lubricants. This new supply hub highlights Chevrons commitment to providing reliable supply to European lubricant producers as they transition to new formulations.

Chevrons network of hubs in Europe will be supplied with base oil from the companys base oil plant that is nearing completion in Pascagoula, Mississippi, U.S. When it starts up, it will be one of the largest base oil plants in the world and is expected to produce 1.3 million tons per year of Group II base oil. It is the third plant where Chevron produces Group II base oils for its global supply chain.

Mag Lubes to Magnify Reach

Dubai, United Arab Emirates-based Mag Lubricants plans to double its workforce and penetrate new geographic markets. Following the recent start of operations at its new U.S. $50 million blending plant, the company announced that it is aiming to employ 250 staff members at the Jebel Ali factory by 2015 and that it plans to expand its international reach to 50 countries within an undisclosed time frame.

We are well-placed to move into new untapped markets given our strong domestic presence in the U.A.E., CEO Mahmoud-Al-Theraawi said. He cited the Middle East and Africa as immediate trading markets, adding that the company already has links with Vietnam and the Philippines.

The company specializes in synthetic and semi-synthetic automotive oils for gas and diesel engines along with gear oil, industrial gear oil, and lithium and calcium complex grease and marine oils.

Royal Dutch Shell Names New CEO

Royal Dutch Shell plc announced that Ben van Beurden will succeed Peter Voser as chief executive officer, effective 1 January 2014. Peter Voser will leave Shell at the end of March 2014, marking 29 years with the company.

Van Beurden joined the Shell in 1983 and has held a number of technical and commercial roles in both the upstream and downstream businesses. He has been downstream director since January 2013.

Neste Oil Adds to U.S. Product Line

Neste Oil has added Nexbase 3030, a light viscosity grade, to its line-up of base stocks available to U.S. customers. With this addition, Neste now offers base oils in viscosity grades from 3 to 8 centiStokes.

Nexbase 3030 is an isoalkane cut, isolated from the light end of the Nexbase Group III base oil production process, and is free of both aromatics and sulfur. Classified as a process oil and with a high flash point, good cold properties and low levels of volatile organic compounds, it is for use in applications ranging from metalworking fluids and transformer oils to driveline fluids.

Lanxess Moves HQ

Specialty chemicals company Lanxess has relocated its headquarters to Cologne, Germany, and began managing its global operations from there as of 1 August. The companys new home is the Lanxess Tower in the citys district of Deutz. Production is not affected by the move and will remain at the current locations.